The increase was also more broad-based, with eight of
its 10 components rising. That compared with only five in January and
six in December.

A gain in housing permits, a longer manufacturing
work week and rising stock prices were among the elements that drove
the index higher. Lower orders for large manufactured goods and lower
consumer outlook for business conditions limited the gain.

The
economy "may be developing some resilience against headwinds from ...
federal spending cuts," Ataman Ozyildrim, an economist at the Conference
Board, said.

A steady recovery in housing and rising job gains
could be offsetting the cuts, he added. Automatic government spending
cuts of $85 billion kicked in March 1, though their impact may not be
felt until April and May when layoffs at government agencies and
contractors will likely start.

The index is derived from data that for the most part have already been reported individually.

Other
reports issued Thursday also pointed to steady improvement. Weekly
unemployment applications rose slightly, but the four-week average, a
less volatile measure, fell for the fourth straight time to the lowest
level in more than five years.